Conventional financing.

3/5/2019Sherelle – thanks for the post / questions and outline Fyi – there are some conventional loan programs that allow a 3% down payment ….I would recommend using this program versus a fha loan program if possible …this is because with a FHA loan the monthly mortgage insurance remains with the loan permanently and with a conventional loan – you should be able to eliminate the mortgage insurance in the future ……Also – if you use a FHA loan for the first home - using a FHA again for next property might be an issue …..you allude to this in your question #2Regarding cash flow analysis ….other items to factor in : utilities / property homeowners insurance ( this will be a little higher when you live in home and should decrease a bit once you convert it to a rental policy / are there any deferred maintenance issues on the house ( roof / furnace / water heater / foundation are the bigger tickets items to watch Definitely get pre approved so you know for certain what you can afford and also so you can begin becoming more familiar with the numbers …we can assist with this if you want - contact us Thanks and I hope this helps Dave Skow 

Quite a few buildable lots, not as much housing inventory..

I was initially trying to avoid HML due to the higher interest rates and go conventional if possible.

Wholesaling off the MLS could have been a viable strategy back in the foreclosure crisis when low priced inventory was everywhere and there were few buyers.

If I put 20% down on a conventional 30-year mortgage at 4.25% (the current going rate), the monthly mortgage cost is $2307.This nets me a minimum of $147/month and maximum (with no need to use any reserves and no vacancies) of $668.Am I doing the math correctly?

Then save with the low monthly mortgage payments and buy another property soon.B) Use an FHA loan with 5% down payment, which will make my monthly mortgage payments significantly bigger, but then use the remaining of the money towards an investment property with a conventional loan (20% down payment)C) Rent a condo as my primary residence and use the remaining of the money towards investment properties with conventional loans (20% down payment)What would you guys recommend for someone who wants to retire early but doesn’t want to have a frugal life?

You’re looking for a well-oiled machine and a team that moves in synchrony and always looking out for your best interest, not their own bottom line.If financing conventionally (25%), I don’t believe new construction MF would be a great fit.

After going through the cash vs. conventional financing debate, I chose to finance to spread our cash across more deals. 

As was mentioned above, PMI with FHA loan won't ever go away until you refinance it with conventional which is defeat the purpose of house hacking.